What is the optimal number of active restaurants for a Coffee News exclusive distribution territory?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
- Prior to purchasing any territories and to signing an agreement with us and to paying the Initial franchise fees, you and we will agree on the boundaries of your exclusive distribution territory that will optimally have a population of 25,000 to 50,000 total and 25 to 40 active restaurants (Franchise Agreement Section 1.1). Since no territory may overlap another, we will research the territory that you wish to service to determine if all or part of it is currently serviced by us or any of our franchises. We usually approve an area where you wish to publish if it does not overlap another where an existing publisher operates. We will also research population and commerce figures to determine the number of people and the number of restaurants that are contained within the proposed territory. This population/restaurant guideline is based on discussions with existing franchises in the U.S. and Canada and considers information from our 5 company-owned franchises. Upon signing the franchise agreement, you will have exclusive rights to distribute your editions of Coffee News within the agreed territory. It is important to note that you may solicit and accept advertisements from any source inside or outside your territory since the agreement limits only your distribution rights.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 17–21)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, the franchisor will agree with the franchisee on the boundaries of an exclusive distribution territory. The optimal territory size will have between 25 and 40 active restaurants. The territory will also ideally have a total population of 25,000 to 50,000 people.
Before signing an agreement or paying any initial franchise fees, Coffee News will research the territory the prospective franchisee wishes to service. This is to ensure that the territory does not overlap with any areas already serviced by the franchisor or its other franchisees. Coffee News will also research population and commerce figures to determine the number of people and restaurants within the proposed territory.
These population and restaurant guidelines are based on discussions with existing Coffee News franchisees in the U.S. and Canada, as well as information from the franchisor's five company-owned franchises. Upon signing the franchise agreement, the franchisee gains exclusive rights to distribute Coffee News editions within the agreed-upon territory. However, franchisees can solicit and accept advertisements from any source, whether inside or outside their territory, as the agreement only restricts distribution rights.